THE NATIONAL CO-OPERATIVE DEVELOPMENT CORPORATION ACT, 1962 

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ARRANGEMENT OF SECTIONS 
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SECTIONS 

1.  Short title, extent and commencement. 
2.  Definitions. 
 2A. Construction of references to any law not in force or any functionary not existence in the State of 

Jammu and Kashmir. 

3.  Establishment of the National Co-operative Development Corporation. 
4.  Disqualifications for being a member of Corporation. 
5.  Term of office of members of Corporation. 
6.  Removal from office of member, etc. 
7.  Meetings, etc., of Corporation. 
8.  Officers and other employees of Corporation. 
9.  Functions of Corporation. 
10. Board of Management of the Corporation. 
11. Other committees. 
12. Grants by the Central Government to Corporation. 
12A. Power of Corporation to borrow money. 
12B. Grants, donations, etc. 
13. Corporation to maintain fund. 
14. Returns and reports. 
15. Directions by Central Government. 
16. Submission of programme of activities and financial estimates. 
17. Accounts of Board and audit. 
18. Vacancies, etc., not to invalidate acts and proceedings of the Corporation. 
19. Delegation. 
20. Declaration of fidelity and secrecy. 
21. Dissolution of Corporation. 
22. Power to make rules. 
23. Power of Corporation to make regulations. 
24. Repeal and saving. 

THE SCHEDULE. 

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THE NATIONAL CO-OPERATIVE DEVELOPMENT CORPORATION ACT, 1962 

ACT NO. 26 OF 1962 

[31st August, 1962.] 

1[An  Act  to  provide  for  the  incorporation  and  regulation  of  a  corporation  for  the  purpose  of 
planning  and  promoting  programmes  for  the  production,  processing,  marketing,  storage, 
export  and  import  of  agricultural  produce,  foodstuffs  2[industrial  goods,  livestock,  certain 
other  commodities  and  services  on  co-operative  principles  and  for  matters  connected 
therewith or incidental thereto].] 

BE it enacted by Parliament in the Thirteenth Year of the Republic of India as follows:— 

1. Short title, extent and commencement.—(1) This Act may be called the National Co-operative 

Development Corporation Act, 1962. 

(2) It extends to the whole of India 3***. 

(3)  It  shall  come  into  force  on  such  date4as  the  Central  Government  may,  by  notification  in  the 

Official Gazette, appoint. 

2. Definitions.—In this Act, unless the context otherwise requires,— 

5[(a) “agricultural produce” includes the following:— 

(i) edible and non-edible oil seeds; 

(ii) cattle feed, including oilcakes and other ingredients; 

(iii) produce of horticulture and animal husbandry; 

(iv) produce of forestry; 

(v) produce of poultry farming; 

(vi) produce of pisciculture; and 

(vii) produce of other allied activities, whether or not undertaken jointly with agriculture;] 

6[(aa) “bank” means a nationalised bank and includes a scheduled bank; 
(ab) “Board” means the Board of Management of the Corporation constituted under section 10;] 
7[(aba)  “Central  financing  institution”  means  Industrial  Development  Bank  of  India established 
under sub-section (1) of section 3 of the Industrial Development Bank of India Act, 1964 (18 of 1964) 
or the Industrial Finance Corporation of India Limited, a company formed and registered under the 
Companies  Act,  1956  (1  of  1956),  or  the  Industrial  Credit  and  Investment  Corporation  of  India 
Limited, a Company formed and registered under the Indian Companies Act, 1913 (7 of 1913);] 

8[(b)  “Central  Warehousing  Corporation”  means 

the  Central  Warehousing  Corporation 
established  under  sub-section  (1)  of  section  3  of  the  Warehousing  Corporations  Act,  1962  (58  of 
1962); 

1. Subs. by Act 3 of 1974, s. 2, for the long title (w.e.f. 1-4-1974). 
2.  Subs.  by  Act  45  of  2002,  s.  2,  for  “and  certain  other  commodities  on  co-operative  principles  and  for  matters  connected 
therewith” (w.e.f. 16-9-2002). 
3. The words “except the State of Jammu and Kashmir” omitted by Act 32 of 1973, s. 2 (w.e.f. 21-8-1973). 
4.  14th  March,  1963,  vide  notification  No.  G.S.R.  456,  dated  14th  March,  1963,  see  Gazette  of  India,  Extraordinary,  
Part II, sec. 3(i). 
5. Subs. by Act 45 of 2002, s. 3, for clause (a) (w.e.f. 16-9-2002). 
6. Ins. by Act 3 of 1974, s. 3 (w.e.f. 1-4-1974). 
7. Ins. by Act 45 of 2002, s. 3 (w.e.f. 16-9-2002). 
8. Subs. by s. 3, ibid., for clauses (b) and (c) (w.e.f. 16-9-2002). 

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(c)  “co-operative  society”  means  a  society  registered  or  deemed  to  be  registered  under  the  
Co-operative  Societies  Act,  1912  (2  of  1912)  or  under  the  Multi-State  Co-operative  Societies  Act, 
1984 (51 of 1984) or under any other law with respect to cooperative societies for the time being in 
force in any State, which is engaged in any of the activities specified in sub-section (1) of section 9 
and includes a Co-operative Land Development Bank, by whatever name called;] 

(d) “Corporation” means the National Co-operative Development Corporation established under 

1[sub-section (1) of section 3]; 

2[(da) “foodstuffs”, include— 

(i) coconuts and areca-nuts; 

(ii) eggs and egg products; 

(iii) fish, whether fresh, frozen, dried or preserved; 

(iv) fruits, whether fresh, dried or dehydrated; 

(v) honey; 

(vi) meat, whether fresh, frozen, dried or preserved; 

(vii) milk and milk products; 

(viii) vegetables; 

(db)  “General  Council”  means  the  General  Council  of  the  Corporation  constituted  under 

sub-section (4) of section 3; 

3[(dba)  “industrial  goods” means  the  products  of industrial  co-operatives or  cottage  and  village 
industries or products of allied industries in the rural area and includes any handicrafts or rural crafts; 

(dbb) “livestock” includes all animals to be raised for milk, meat, fleece, skin, wool and other by-

products;] 

(dc) “Managing director” means the managing director of the Corporation; 

4[(dd)  “nationalised  bank”  means  a  corresponding  new  bank  constituted  under  section  3  of  the 
Banking  Companies  (Acquisition  and  Transfer  of  Undertakings)  Act,  1970  (5  of  1970)  or  under 
section  3  of  the  Banking  Companies  (Acquisition  and  Transfer  of  Undertakings)  Act,  1980  (40  of 
1980);]] 

(e)  “notified  commodity”  means  any  commodity  (other  than  agricultural  produce  2[and 
foodstuffs]) which the Central Government may, by notification in the Official Gazette, declare to be 
a  notified  commodity  for  the  purposes  of  this  Act,  being  a  commodity  with  respect  to  which 
Parliament has power to make laws by virtue of entry 33 in List III in the Seventh Schedule to the 
Constitution; 

3[(ea) “notified services” means any service which the Central Government may, by notification 

in the Official Gazette, declare to be notified services for the purposes of this Act;] 

(f) “prescribed” means prescribed by rules made under this Act; 

(g) “Reserve Bank” means the Reserve Bank of India constituted under the Reserve Bank of India 

Act, 1934 (2 of 1934); 

2[(ga) “scheduled bank” means a bank for the time being included in the Second Schedule to the 

Reserve Bank of India Act, 1934 (2 of 1934);] 

1. Subs. by Act 3 of 1974, s. 3, for “section 3” (w.e.f. 7-4-1975). 
2. Ins. by s. 3, ibid. (w.e.f. 1-4-1974). 
3. Ins. by Act 45 of 2002, s. 3 (w.e.f. 16-9-2002). 
4. Subs. by s. 3, ibid., for clause (dd) (w.e.f. 16-9-2002). 

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1[(h) “State Bank” means the State Bank of India constituted under the State Bank of India Act, 

1955 (23 of 1955)or any of the subsidiary banks of the State Bank of India; 

(ha)  “State  Co-operative  Bank”  has  the  same  meaning  as  in  the  National  Bank  for  Agriculture 

and Rural Development Act, 1981 (61 of 1981);] 

(i) “year” means the financial year. 

2[2A. [Construction of references to any law not in force or any functionary not existence in the State 
of Jammu and Kashmir*].—Omitted by the Jammu and Kashmir Reorganization (Adaptation of Central 
Laws)  Order,  2020,  vide  notification  No.  S.O.  1123(E)  dated  (18-3-2020)  and  Vide  Union  Territory  of 
Ladakh Reorganisation (Adaptation of Central Laws) Order, 2020, notification No. S.O. 3774(E), dated 
(23-10-2020). 

3.  Establishment  of  the  National  Co-operative  Development  Corporation.—(1)  The  Central 
Government shall, by notification in the Official Gazette, establish with effect from such date as may be 
specified  in  the  notification,  a  Corporation  by  the  name  of  the  National  Co-operative  Development 
Corporation which shall be a body corporate having perpetual succession and a common seal with power 
to acquire, hold and dispose of property and to contract, and may, in the said name, sue and be sued. 

(2) The head-office of the Corporation shall be in New Delhi. 
3[(3) The Corporation shall carry on its functions through the General Council and the Board. 
 (4) The General Council shall consist of the following members, namely:— 

(i) a President and a Vice-President, both to be nominated by the Central Government; 

(ii)  eight  members,  ex  officio,  to  be  nominated  by  the  Central  Government  from  such  of  its 

Ministries dealing with economic matters as it may think fit; 

4[(iii)  Chairman  of  the  National  Bank  of  Agriculture  and  Rural  Development  constituted  under 

the National Bank for Agriculture and Rural Development Act, 1981 (61 of 1981), ex officio;] 

(iv) Managing Director of the State Bank, ex officio; 

(v) Managing Director of the Food Corporation of India, constituted under the Food Corporations 

Act, 1964, (37 of 1964) ex officio; 

(vi)  Managing  Director  of  the  Central  Warehousing  Corporation,  constituted  under  the 

Warehousing Corporations Act, 1962 (59 of 1962), ex officio; 

5[(vii)  one  member  to  be  nominated  by  the  Central  Government  from  amongst  the  chairmen  of 

one of the Central financing institutions, ex officio;] 

(viii) a member representing banks, to be nominated by the Central Government; 

(ix) Chairman of the National Co-operative Union of India, ex officio; 

(x) Chairman of the National Agricultural Co-operative Marketing Federation, ex officio; 

(xi) Chairman of the National Federation of Co-operative Sugar Factories, ex officio; 

(xii) Chairman of the All India Federation of Co-operative Spinning Mills, ex officio; 

(xiii) Chairman of the All India State Co-operative Banks,Federation, ex officio; 

(xiv) eleven members, other than those nominated under clause (xv), representing the States and 
the Union territories, to be nominated by the Central Government, provided that not more than one 
person shall be so nominated from each State or Union territory; 

1. Subs. by Act 45 of 2002, s. 3, for clause (h) (w.e.f. 16-9-2002). 
2. Ins. by Act 32 of 1973, s. 3 (w.e.f. 21-8-1973). 
3. Subs. by Act 3 of 1974, s. 4, for sub-sections (3), (4) and (5) (w.e.f. 7-4-1975). 
4. Subs. by Act 45 of 2002, s. 4, for clauses (iii) and (iv) (w.e.f. 16-9-2002). 
5. Subs. by s. 4, ibid., for clause (vii) (w.e.f. 16-9-2002). 
*. Vide notification No. S.O. 3912(E), dated 30th October, 2019, this Act is made applicable to the Union territory of Jammu and 

Kashmir and the Union territory of Ladakh. 

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(xv) eleven members to be nominated by the Central Government from among the Chairmen  of 
the State level co-operative federations from the States and Union territories, provided that not more 
than one person shall be so nominated from each State or Union territory; 

(xvi) four members representing persons having special knowledge of, or practical experience in, 

agricultural co-operative development, to be nominated by the Central Government; 

(xvii)  1[fourmembers]  representing  national  level  organisations  engaged  or  interested  in  the 
promotion  and  development  of  co-operative  programmes,  to  be  nominated  by  the  Central 
Government; 

(xviii) the managing director. 

(5) The powers and functions of the Corporation shall be exercised or discharged, as the case may be, 
by the General Council, and references elsewhere in this Act to the Corporation shall, unless the context 
otherwise requires, be construed as references to the General Council. 

(6)  Notwithstanding  the  expiry  of  the  prescribed  term  of  his  office,  every  member  of  the  General 
Council  shall  continue  to hold  office  as  such,  until his  successor  in  such  office  has  assumed  charge  of 
such office. 

(7)  Members  of  the  General  Council,  other  than  the  managing  director,  shall  be  entitled  to  receive 
such sitting fees as may be specified by regulations made by the Corporation under this Act, for attending 
any meeting of the General Council, Board or any committee of the Corporation: 

Provided that no official member shall be entitled to receive any sitting fee.] 

4. Disqualifications for being a member of Corporation.—A person shall be disqualified for being 

chosen as, and for being, a member of the Corporation— 

(i) if he is, or at any time has been, adjudicated insolvent or has suspended payment of his debts 

or has compounded with his creditors; or 

(ii)  if  he  is  or  has  been  convicted  of  any  offence  involving  moral  turpitude  and  sentenced  in 
respect thereof to imprisonment for not less than six months, unless a period of five years has elapsed 
from the date of expiry of the sentence; or 

(iii) 2[except in the case of managing director,] if he is a salaried official of the Corporation. 

5.  Term  of  office  of  members  of  Corporation.—(1)  The  term  of  office  of  members  of  the 

Corporation and the manner of filling vacancies among members shall be such as may be prescribed. 

(2) Any member of the Corporation other than an ex officio member may resign his office by giving 
notice in writing to the Central Government and on such resignation being accepted, he shall be deemed 
to have vacated his office. 

6. Removal from office of member, etc.—The Central Government may, at any time, remove from 
office  any  member  other  than  an  ex  officio  member  of  the  Corporation  after  giving  him  a  reasonable 
opportunity of showing cause against the proposed removal. 

7. Meetings, etc., of Corporation.—(1) The Corporation 3[shall ordinarily meet twice a year at such 
times] and places and shall, subject to the provisions of sub-sections (2) and (3), observe such procedure 
in regard to transaction of business at its meetings (including the quorum at meetings) as may be provided 
by regulations made by the Corporation under this Act. 

(2) The 4[President] or, in his absence, the 5[Vice-President] or, in the absence of both the 4[President] 
and the  5[Vice-President], any  member chosen by the members present from amongst themselves, shall 
preside at a meeting of the Corporation. 

1. Subs. by Act 45 of 2002, s. 4, for “three members” (w.e.f. 16-9-2002). 
2. Ins. by Act 3 of 1974, s. 5 (w.e.f. 1-4-1974). 
3. Subs. by s. 6, ibid., for “shall meet at such times” (w.e.f. 7-4-1975). 
4. Subs. by s. 6, ibid., for “Chairman” (w.e.f. 7-4-1975). 
5. Subs. by s. 6, ibid., for “Vice-Chairman” (w.e.f. 7-4-1975). 

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(3)  All  questions  at  a  meeting  of  the  Corporation  shall  be  decided  by  a  majority  of  votes  of  the 
members present and voting, and in the case of an equality of votes, the 1[President] or, in his absence, the 
2[Vice-President]  or,  in  the  absence  of  both  the  1[President]  and  the  2[Vice-President],  the  person 
presiding shall have and exercise a second or casting vote. 

8.  Officers  and  other  employees  of  Corporation.—(1)  The  Central  Government  shall,  in 

consultation with the Corporation, appoint a person to be the 3[managing director]. 

(2) Subject to such rules as may be made by the Central Government in this behalf, the Corporation 
may appoint such other officers and employees as it considers necessary for the efficient performance of 
its functions. 

(3) The methods of appointment, the conditions of service and the scales of pay of the officers and 

other employees of the Corporation shall,— 

(a) as respects the 4[managing director], be such as may be prescribed; and 

(b)  as  respects  the  other  officers  and  employees,  be  such  as  may  be  determined  by  regulations 

made by the Corporation under this Act. 
5[(4)  The  managing  director  shall  exercise  such  powers  and  perform  such  duties  as  the  Board  may 

entrust or delegate to him.] 

9.  Functions  of  Corporation.—6[(1)  Subject  to  the  provisions  of  this  Act,  the  functions  of  the 

Corporation shall be to 7[plan, promote and finance]programmes, through co-operative societies, for— 

(a)  the  production,  processing,  marketing,  storage,  export  and  import  of  agricultural  produce, 

foodstuffs, poultry feed and notified commodities; 

(b) the collection, processing, marketing, storage and export of minor forest produce;] 
8[(c) development of notified services.] 

(2) In particular and without prejudice to the generality of the foregoing provision, the Corporation 

may— 

(a)  advance  loans  or  grant  subsidies  to  State  Governments  for  financing  co-operative  societies 

and for employment of staff for implementing programmes of co-operative development; 

(b) provide funds to State Governments for  financing co-operative societies for the purchase of 
9[agricultural  produce,  foodstuffs]  10[livestock,  poultry  feed,  industrial  goods,  notified  commodities 
and notified services] on behalf of the Central Government; 

(c)  plan  and  promote  programmes  through  co-operative  societies  for  the  supply  of  seeds, 
manures,  fertilizers,  agricultural  implements  and  other  articles  for  the  development  of  agricultural 
produce; 

11[(d) provide loans and grants directly to the national level co-operative societies and other co-

operative societies having objects extending beyond one State; 

(e) provide loans to co-operative societies on the guarantee of State Governments or in the case of 

co-operative societies in the Union territories, on the guarantee of Central Government: 

1. Subs. by Act 3 of 1974, s. 6, for “Chairman” (w.e.f. 7-4-1975). 
2. Subs. by s. 6, ibid., for “Vice-Chairman” (w.e.f. 7-4-1975). 
3. Subs. by s. 7, ibid., for “Secretary of the Corporation” (w.e.f. 1-4-1974). 
4. Subs. by s. 7, ibid., for “Secretary” (w.e.f. 1-4-1974). 
5. Ins. by s. 7, ibid. (w.e.f. 7-4-1975). 
6. Subs. by s. 8, ibid., for sub-section (1) (w.e.f. 1-4-1974). 
7. Subs. by Act 45 of 2002, s. 5, for “plan and promote” (w.e.f. 16-9-2002). 
8. Ins. by s. 5, ibid. (w.e.f. 16-9-2002). 
9. Subs. by Act 3 of 1974, s. 8, for “agricultural produce” (w.e.f. 1-4-1974). 
10. Subs. by Act 45 of 2002, s. 5, for “and notified commodities” (w.e.f. 16-9-2002). 
11. Ins. by Act 3 of 1974, s. 8. (w.e.f. 1-4-1974). 

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1[Provided that no such guarantee shall be required in cases in which security to the satisfaction 

of the Corporation is furnished by the borrowing co-operative society;] 

(f)  participate  in  the  share  capital  of  the  national  level  co-operative  societies  and  other  

co-operative societies having objects extending beyond one State.] 

(3)  The  Corporation  shall  so  exercise  its  functions  under  this  section  as  not  to  interfere  with  the 
activities  of  the  Khadi  and  Village  Industries  Commission  established  under  the  Khadi  and  Village 
Industries Commission Act, 1956 (61 of 1956). 

2[10. Board of Management of the Corporation.—(1) There shall be a Board of Management of the 

Corporation which shall consist of the following members, namely:— 

(i) the Vice-President of the General Council, who shall be the Chairman; 

(ii)  three  members  of  the  General  Council,  to  be  nominated  by  the  Central  Government  from 

among the members referred to in clause (ii) of sub-section (4) of section 3; 

(iii) the member of the General Council, referred to in clause (iii) of sub-section (4) of section 3; 

(iv) one member of the General Council, to be nominated by the Central Government from among 

the members referred to in clauses (ix), (x), (xi), (xii) and (xiii) of sub-section (4) of section 3; 

(v)  two  members  of  the  General  Council,  to  be  nominated  by  the  Central  Government  from 

among the members referred to in clause (xiv) of sub-section (4) of section 3; 

(vi)  two  members  of  the  General  Council,  to  be  nominated  by  the  Central  Government  from 

among the members referred to in clause (xv) of sub-section (4) of section 3; 

(vii)  one  member  of  the  General  Council,  to  be  nominated  by  the  Central  Government  from 

among the members referred to in clauses (xvi) and (xvii) of sub-section (4) of section 3; 

(viii) the managing director. 

(2) The Vice-Chairman of the Board shall be nominated by the Central Government. 

(3) Subject to the general control, direction and  superintendence of the General Council, the Board 

shall be competent to deal with any matter within the competence of the Corporation. 

(4) The Board shall meet at such times and at such places and shall observe such procedure in regard 
to  transaction  of  business  at  its  meetings  (including  the  quorum  at  meetings)  as  may  be  provided  by 
regulations made by the Corporation under this Act. 

(5) The confirmed minutes of every meeting of the Board shall be laid before the General Council at 

its next following meeting.] 

11.  Other  committees.—The  Corporation  may  constitute  such  other  committees  for  general  or 

special purposes as it deems necessary for the efficient performance of its functions under this Act. 

12. Grants by the Central Government to Corporation.—The Central Government shall, after due 

appropriation made by Parliament by law in this behalf, pay to the Corporation— 

(a) by way of grant each year, such sum of money as is required by the Corporation for giving 

subsidies to State Governments and for meeting its administrative expenses; 3*** 

(b) by way of loan, such sum of money on such terms and conditions as the Central Government 

may determine; 4[and] 

4[(c) such additional grants, if any, for the purposes of this Act.] 

1. The proviso ins. by Act 45 of 2002, s. 5 (w.e.f. 16-9-2002). 
2. Subs. by Act 3 of 1974, s. 9, for section 10 (w.e.f. 7-4-1975). 
3. The word “and” omitted by s. 10, ibid. (w.e.f. 1-4-1974). 
4. Ins. by s. 10, ibid. (w.e.f. 1-4-1974). 

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1[12A.  Power  of  Corporation  to  borrow  money.—(1)  The  Corporation  may,  for  the  purposes  of 
carrying out its functions under this Act, and with the previous approval of, and subject to the directions 
of the Central Government, borrow money from— 

(a) the public by the issue or sale of bonds or debentures, or both, carrying interest at such rates 

as may be specified therein; 

(b) any bank or other financial institution; 

(c) any  other  authority,  organisation  or  institution  as  may  be  specially  approved  by  the  Central 

Government in this behalf. 

(2)  The  Central  Government  may  guarantee  the  repayment  of  the  moneys  borrowed  by  the 
Corporation  under  clause  (a)  or  clause  (b)  or  clause  (c)  of  sub-section  (1)  and  the  payment  of  interest 
thereon and other incidental charges.] 

2[12B.  Grants,  donations,  etc.—(1)  The  Corporation  may  receive  gifts,  grants,  donations  or 

benefactions from Government or any other agency in or outside India. 

(2)  The  Corporation  shall  not  receive  any  gifts,  grants,  donations  or  benefactions  from  a  foreign 
government  or,  any  other  agency  outside  India  except  with  the  previous  approval  of  the  Central 
Government.] 

13. Corporation to maintain fund.—(1) The Corporation shall maintain a fund called the National 

Co-operative Development Fund (hereinafter referred to as the Fund) to which shall be credited— 

(a) all moneys and other securities transferred to it under clause (a) of sub-section (2) of section 

24; 

(b) the grants and other sums of money by way of loans paid to the Corporation by the Central 

Government under section 12; 

3[(bb) all moneys received under section 12B; 

  (bbb) all moneys received for services rendered;] 
4[(ba) all moneys borrowed under section 12A;] 

(c) such additional grants, if any, as the Central Government may make to the Corporation for the 

purposes of this Act; and 

(d) such sums of money as may, from time to time, be realised out of repayment of loans made 
from  the  Fund  or  from  interest  on  loans  or  dividends  4[or  other  realisations]  on  investments  made 
from the Fund. 

(2) The moneys in the Fund shall be applied for— 

(a) advancing loans and granting subsidies to State Governments on such terms and conditions as 
the Corporation may deem fit for the purpose of enabling State Governments to subscribe to the share 
capital of co-operative societies or for otherwise financing co-operative societies; 

(b) meetingthe pay and allowances of the 5[managing director, the officers] and other employees 

of the Corporation and other administrative expenses of the Corporation; and 

(c) carrying out the purposes of this Act. 

6[(3)  All  moneys  in  the  Fund  shall  be  deposited  in  the  Reserve  Bank  or  the  State  Bank  or  a 

nationalised bank or a scheduled bank or a State Co-operative Bank.] 

1. Ins. by Act 3 of 1974, s. 11 (w.e.f. 1-4-1974). 
2. Ins. by Act 45 of 2002, s. 6 (w.e.f. 16-9-2002). 
3. Ins. by s. 7, ibid. (w.e.f. 14-8-2002). 
4. Ins. by Act 3 of 1974, s. 12(w.e.f. 1-4-1974). 
5. Subs. by s. 12, ibid., for “officers” (w.e.f. 1-4-1974). 
6. Subs. by Act 45 of 2002, s. 7, for sub-section (3) (w.e.f. 16-9-2002). 

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14.  Returns  and  reports.—(1)  The  Corporation  shall  furnish  to  the  Central  Government  at  such 
times and in such form and manner as may be prescribed or as the Central Government may direct, such 
returns and statements and such particulars in regard to the discharge of its functions under this Act as the 
Central Government may, from time to time, require. 

(2) Without prejudice to the provisions of sub-section (1), the Corporation shall, as soon as possible, 
after  the  end  of  each  year,  submit  to  the  Central  Government  a  report,  in  such  form  and  manner  and 
before  such  date  as  may  be  prescribed,  giving  a  true  and  full  account  of  its  activities,  policy  and 
programme during the previous year. 

(3)  A  copy  of  the  report  received  under  sub-section  (2)  shall  be  laid  before  both  Houses  of 

Parliament. 

15. Directions by Central Government.—In all matters including matters of policy, the Corporation 

shall be guided by such directions as may be given to it by the Central Government. 

16.  Submission  of  programme  of  activities  and  financial  estimates.—(1)  The  Corporation  shall 
prepare  before  the  commencement  of  each  year  a  statement  of  programme  of  its  activities  during  the 
forthcoming year as well as a financial estimate in respect thereof. 

(2)  A  statement  prepared  under  sub-section  (1)  shall,  not  later  than  three  months  before  the 

commencement of each year, be submitted to the Central Government for approval. 

17. Accounts of Board and audit.—(1) The Corporation shall maintain proper accounts and other 
relevant  records  and  prepare  an  annual  statement  of  accounts  in  such  form  as  may  be  prescribed  in 
consultation with the Comptroller and Auditor-General of India. 

(2) The account of the Corporation shall be audited annually by the Comptroller and Auditor-General 
of India or any person authorised by him in this behalf and any expenditure incurred in connection with 
such audit shall be payable by the Corporation. 

(3) The Comptroller and Auditor-General of India and any person authorised by him in connection 
with the audit of the accounts of the Corporation shall have the same rights, privileges and authority in 
connection with such audit as the Comptroller and Auditor-General has in connection with the audit of 
Government  accounts  and  in  particular,  shall  have  the  right  to  demand  the  production  of  books, 
accounnts,  connected  vouchers  and  other  documents  and  papers  and  to  inspect  any  office  of  the 
Corporation. 

(4) The accounts of the Corporation certified by the Comptroller and Auditor-General of India or any 
other  person  authorised  by  him  in  this  behalf  together  with  an  audit  report  thereon  shall  be  forwarded 
annually  to  the  Central  Government  and  that  Government  shall  cause  the  same  to  be  laid  before  both 
Houses of Parliament. 

18.  Vacancies,  etc.,  not  to  invalidate  acts  and  proceedings  of  the  Corporation.—No  act  or 
proceeding  of  1[the  General  Council,  the  Board  or  any  of  the  committees  of  the  Corporation]  shall  be 
invalid  by  reason  only  of  the  existence  of  any  vacancy  among  its  members  or  any  defect  in  the 
constitution thereof. 

19.  Delegation.—The  Corporation  may,  by  general  or  special  order  in  writing,  delegate  to  the 
2[President or the Vice-President] or any other member or any officer of the Corporation subject to such 
conditions and limitations, if any, as may be specified in the order such of its powers and functions under 
this Act as it may deem necessary. 

20. Declaration of fidelity and secrecy.—Every member, auditor, officer or other employee of the 
Corporation shall, before entering upon his duties, make a declaration of fidelity and secrecy in the form 
set out in the Schedule. 

21.  Dissolution  of  Corporation.—(1)  The  Central  Government,  if  it  is  of  opinion  that  the 
Corporation  has  failed  to  carry  out  its  functions  under  this  Act  or  that  for  any  other  reason  it  is  not 

1. Subs. by Act 3 of 1974, s. 13, for “the Corporation” (w.e.f. 7-4-1975). 
2. Subs. by s. 14, ibid., for “Chairman or the Vice-Chairman” (w.e.f. 7-4-1975). 

9 

 
 
                                                           
necessary  to  continue  the  Corporation,  may,  by  notification  in  the  Official  Gazette,  dissolve  the 
Corporation from such date as may be specified in the notification. 

(2) When the Corporation is dissolved under sub-section (1),— 

(a) all members of the Corporation shall, from the date of dissolution, vacate their offices as such 

members; 

(b) all powers and duties of the Corporation shall, as from the date of dissolution, be exercised 
and performed by the Central Government or such person or persons as the Central Government may 
appoint in this behalf; 

(c) all moneys and other properties of the Corporation shall vest in the Central Government.  

22. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette, 

make rules to carry out the purposes of this Act. 

(2) Without prejudice to the generality of the foregoing power, such rules may provide for— 

1* 

 * 

 * 

 * 

 * 

(d) the term of office of members of the Corporation and the manner of filling vacancies among 

them; 

(e) the methods of appointment, the conditions of service and the scale of pay of the 2[managing 

director]; 
3* 

* 

* 

 * 

 * 

(g) the returns, statements and other particulars in regard to the discharge of its functions to be 

furnished by the Corporation to the Central Government; 

(h) the form and the manner in which, and the time within which, the Corporation shall furnish to 
the Central Government returns, statements and other particulars with regard to the discharge of its 
functions; 

(i) the form and the manner in which, and the time within which, the Corporation shall furnish to 

the Central Government a report of its activities, policy and programme; 

(j) any other matter which has to be, or may be, prescribed. 

(3) Every rule made under this section shall be laid as soon as may be after it is made, before each 
House of Parliament while it is in session for a total period of thirty days which may be comprised in one 
session  4[or  in  two  or  more  successive  sessions,  and  if,  before  the  expiry  of  the  session  immediately 
following the session or the successive sessions aforesaid], both Houses agree in making any modification 
in the rule or both Houses agree that the rule should not be made, the rule shall thereafter have effect only 
in such modified form or be of no effect, as the case may be; so however that any such modification or 
annulment shall be without prejudice to the validity of anything previously done under that rule. 

23.  Power  of  Corporation  to  make  regulations.—(1)  The  Corporation  may,  with  the  previous 
sanction  of  the  Central  Government,  by  notification  in  the  Official  Gazette,  make  regulations  not 
inconsistent with this Act and the rules made thereunder, to provide for all matters for which provision is 
necessary or expedient for the purpose of giving effect to the provisions of this Act. 

1. Clauses (a), (b) and (c) omitted by Act 3 of 1974, s. 15 (w.e.f. 7-4-1975). 
2. Subs. by s. 15, ibid., for “Secretary to the Corporation” (w.e.f. 1-4-1974). 
3. Clause (f) omitted by s. 15, ibid. (w.e.f. 7-4-1975). 
4. Subs. by Act 32 of 1973, s. 4, for certain words (w.e.f. 21-8-1973). 

10 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                           
(2) In particular, and without prejudice to the generality of the foregoing power, such regulations may 

provide for— 

(a) the manner in which meetings of  1[the General Council, the Board and other committees of 
the  Corporation]  shall  be  convened,  the  fees  for  attending  such  meetings  and  the  procedure  to  be 
followed thereat; 

(b)  the  methods  of  appointment,  the  conditions  of  service  and  the  scales  of  pay  of  the  officers 

(other than the 2[managing director]) and other employees of the Corporations; 

(c) the duties and conduct of officers and other employees of the Corporation; and 

(d)  any  other  matter  in  respect  of  which  the  Corporation  is  empowered  or  required  to  make 

regulations under this Act. 

(3)  The  Central  Government  may,  by  notification  in  the  Official  Gazette,  rescind  any  regulation 

which it has sanctioned and thereupon the regulation shall cease to have effect. 

24. Repeal and saving.—(1) With effect from the date on which the Corporation is established under 
section  3,  the  Agricultural  Produce  (Development  and  Warehousing)  Corporations  Act,  1956  (28  of 
1956),  shall,  in  so  far  as  it  relates  to  the  National  Co-operative  Development  and  Warehousing  Board, 
stand repealed. 

(2) Notwithstanding such repeal,— 

(a)  all  moneys  and  other  securities  belonging  to  the  National  Co-operative  Development  Fund 
which, immediately before the said date, was maintained by the National Co-operative Development 
and Warehousing Board established under the repealed Act (hereinafter referred to as the said Board), 
shall stand transferred to, and be maintained by, the Corporation established under section 3 of this 
Act; 

(b)  all  moneys  and  other  securities  belonging  to  the  National  Warehousing  Development  Fund 
which, immediately before the said date, was maintained by the said Board under the repealed Act, 
shall stand transferred to and be maintained by the Central Warehousing Corporation; 

(c) all shares in the capital of the Central Warehousing Corporation held by the said Board shall 
stand transferred to the Central Government subject to the same liabilities as to payment of unpaid 
calls on such shares as the said Board was subject to; 

(d)  anything  done  or  any  action  taken  (including  any  loan  advanced,  subsidy  granted  and 
appointment, delegation, rule or regulation made) under the repealed Act shall, in so far as it is not 
inconsistent with the provisions of this Act, be deemed to have been done or taken under this Act; and 

(e) all rights, liabilities and obligations of the said Board, whether arising out of any contract or 
otherwise,  shall  be  the  rights,  liabilities  and  obligations  respectively  of  the  Corporation  established 
under section 3 of this Act. 

1. Subs. by Act 3 of 1974, s. 16, for “the Corporation, the Executive Committee and other committees thereof” (w.e.f. 7-4-1975). 
2. Subs. by s. 16, ibid., for “Secretary” (w.e.f. 1-4-1975). 

11 

 
 
 
 
                                                           
THE SCHEDULE 

(See section 20) 

DECLARATION OF FIDELITY AND SECRECY 

I...............declare that I will faithfully, truly and to the best of my judgment, skill and ability execute 
and perform the duties which are required of me as a member, officer, employee or auditor (as the case 
may be) of the National Co-operative Development Corporation and which properly relate to the office or 
position in the said Corporation held by me. 

I further declare that I will not communicate or allow to be communicated to any persons not legally 
entitled thereto any information relating to the affairs of the said Corporation nor will I allow any such 
persons to  inspect or have access to  any  books  or  documents  belonging  to,  or in  the  possession of,  the 
Corporation and relating to the business of the Corporation. 

Signature 

Signature 

Signature  

Signed before me 

Date 

12 

 
 
